Kaiser Reef Limited (ASX: KAU) ('Kaiser' or the 'Company') is pleased to advise that diamond drilling has commenced at the Company's Union Hill Gold Project in Victoria.
The Union Hill in-pit diamond drilling program is designed to test for unmined extensions of the Eaglehawk Reef ('EHR') directly beneath the Union Hill open pit floor. The EHR alone produced 491,000 ounces of high-grade gold within the 1.74 million ounces of historic gold production at 28 g/t gold at Maldon2 . Historic mining was largely confined to the hanging-wall portion of the reef, with modelling indicating significant potential remaining within the footwall zone and between interpreted historic mining stopes. This program represents the first drilling within the Union Hill pit environment since surface mining ceased in 1992. Modelling indicates that portions of the Eaglehawk Reef remain unmined and could contribute to future underground mining opportunities should economic grades be confirmed. Drill hole UHP-0019 has be previously unreported and represents the only drill hole located below the open pit and returned an encouraging intercept of 7.6m @ 4.9 g/t gold from 45.7m downhole1 . The existing decline development at Union Hill passes in close proximity to the Eaglehawk Reef, providing a platform to continue drilling from underground, should surface drilling results confirm extensions of mineralisation.
Kaiser Reef Managing Director, Jonathan Downes, commented: 'We are very pleased to commence drilling at Union Hill. The program targets a historically productive and geologically well-understood reef system where modelling suggests significant mineralisation remains unmined. The system at Maldon has historically produced 1.7Moz of gold from underground and Kaiser is now in a position, with the Henty acquisition bedded in and producing strong cashflow, to rigorously build the resource and advance Union Hill as an exciting exploration and development project. Union Hill is a true brownfields project, in the shadow of multiple head frames. It is located on a granted mining lease with an operating, and Kaiser owned, gold processing plant just 4km by road. The existing decline excavation and grid power connection provide a great opportunity to continue exploration from underground.'
Contact:
Email: kaiserreef.com.au
Tel: 08 9481 0389
Email: admin@kaiserreef.com.au
About Kaiser Reef Limited (ASX: KAU) Kaiser Reef is a gold producer and exploration company with a clear focus on gold within the Tasmanian and Victorian goldfields. Kaiser wholly owns and operates the Henty Gold Mine, the A1 Gold Mine and the Maldon Gold Processing Plant and Maldon Gold Mine (currently on care and maintenance) in Victoria.
Future Performance This announcement may contain certain forward-looking statements and opinions. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties, assumptions, contingencies and other important factors, many of which are outside the control of the Company and which are subject to change without notice and could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forwardlooking statements or other forecast. Nothing contained in this announcement, nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future. Please note that the restart study referred to in this announcement involves certain risks and uncertainties. The future performance of the Company, including its ability to implement proposals coming out of the restart study, will be influenced by a range of factors, many of which are largely beyond the control of the Company and the Directors.
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